OPEC sees balanced oil market in 2014 at current output

May 13, 2014 - 2:05:41 pm

OPEC sees balanced oil market in 2014 at current output

LONDON: OPEC said its current oil output is helping to meet global demand fully and leading to a balanced market in 2014, a further sign the exporter group is unlikely to alter output policy at a June meeting.

In a monthly report on Tuesday, the Organization of the Petroleum Exporting Countries also raised the forecast demand for its crude oil in 2014 to 29.76 million barrels per day (bpd), up 110,000 bpd from the previous estimate.

"Along with the ongoing increase in non-OPEC supply, current OPEC production will contribute to fully meet expected demand, resulting in a fairly balanced market this year," the report from OPEC's Vienna headquarters said.

The report showed OPEC's crude oil output rose in April from March but remained lower than this year's global requirement and OPEC's nominal supply target of 30 million bpd, largely as a result of outages rather than voluntary cutbacks.

According to secondary sources cited by the report, OPEC output rose by 131,000 bpd to 29.59 million bpd, largely due to higher Iraqi and Saudi Arabian supply.

This is the last monthly report scheduled for publication before OPEC meets on June 11 in Vienna to consider adjusting the output target.

OPEC's most influential voice, Saudi Oil Minister Ali al-Naimi, said on Monday the group should leave the target unchanged at the meeting, citing a "fairly stable" market.

In the report, OPEC left its projection for the growth in global oil demand this year unchanged at 1.14 million bpd. (Reuters)